US tariff policy may disrupt EU gas storage replenishment — Bloomberg

The European gas market hit a key milestone over the weekend: inventories rose above 50% of capacity. Considering the exceptionally low starting point, analysts surveyed by Bloomberg see this as meaningful progress.

Europe entered its annual gas refilling season in a vulnerable position, with reserves of fuel at just 33.5% of total storage capacity. This marks a sharp decline from the 55% levels seen during the previous two seasons, when warm winters and record-high prices suppressed gas demand.

Lower-than-usual inventory levels are forcing the EU to secure additional fuel supplies. Under current bloc regulations, storage facilities must reach 90% capacity by November. However, Brussels is drafting new rules that would lower this target to 83%, with the European Commission proposing to let member states set their own date when it needs to be achieved. 

Yet significant risks to achieving these targets remain. New US restrictions on Russian gas supplies could disrupt European storage replenishment efforts. Meanwhile, any resolution of the US-China trade dispute and subsequent economic recovery would likely trigger increased Chinese fuel purchases, tightening the global LNG market.